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CSS + Nested UL in IE problem

I'm building a site which worked initially as a static page but when I integrated it with Drupal it went crazy on me. I've been able to fix almost everything but I can't figure out how to get tame the issue IE(7) is producing when it comes to the nest UL

In every other browser the menu looks fine but in IE7 the left hand menu vertically collapses and I can't seem to force the height properly either.

Any help would be greatly appreciated.

I have the following code working just fine in IE7 but can't identify where I/Drupal broke it on the above live version